Wheat markets gained more than 2 per cent, but canola markets eased.
- Chicago wheat May contract up US28.75cents per bushel to 1098c/bu;
- Kansas wheat May contract up 19.75c/bu to 1092.25c/bu;
- Minneapolis wheat May up 28.75c/bu to 1079c/bu;
- MATIF wheat May contract up €4.25/t to €367.75/t;
- Black Sea wheat July contract up $9/t to $349/t;
- Corn May contract up 24.5c/bu to 754.5c/bu;
- Soybeans May contract up 19.25c/bu to 1668.5c/bu;
- Winnipeg canola November 2022 contract up C$1.20 /t to $933/t;
- MATIF rapeseed November 2022 contract down €4.75/t to €722.75/t;
- ASX July 2022 wheat contract unchanged at $411/t;
- ASX Jan 2023 wheat contract down $8.50/t to $401.50/t;
- AUD dollar firmer at US$0.738;
- Dow Jones Industrials Average up 1pc;
- Brent crude up 8pc.
Markets traded lower mid week on ideas that a cease fire could be met, and gains were pretty much unwound yesterday as US President Joe Biden Russia’s President Vladimir Putin exchanged verbal blows. The question remains: How much damage has been done to the supply chain? Global companies have moved staff out of Ukraine, and when they return is a huge question. It is hard to imagine the supply chain will be operating by the beginning of new crop.
US export sales came in at a solid 2 million tonnes (Mt) for corn versus estimates of 1.7Mt, and soybeans and wheat were in line with estimates at 1.7Mt and 471,500t.
Black Sea research firm SovEcon has reduced its estimate for new-crop Ukrainian wheat production estimates by 19 per cent, and corn is corn down 34pc. According to the Ukrainian Government, spring wheat planting is under way.
USDA said freight rates for shipping US grains from the Gulf of Mexico to Japan hit US$79/t, up 12pc from the start of the year, and 37pc from the same time last year.
Local markets were a touch softer yesterday but liquidity remained sluggish over the day as buyers step back and take a breather and continue to work through execution. Growers that have received some good falls of rain this week through the Wimmera and Mallee areas have started planting early grazing crops and long-season canola.
Sorghum harvest is hitting its peak in Queensland, and the market has still managed to rally in the past week, with delivered Downs at around $335-340/t. Sites continue to fill quickly and reach capacity as yields remain impressive.